With the end of the Seven Years' War and the signing of the Treaty of Paris (1763), France ceded almost all of its territory in mainland North America, except for fishing rights off Newfoundland and two small islands where it could dry that fish. In turn France received the return of its sugar colony, Guadeloupe, which it considered more valuable than Canada.[1]

During the American Revolution there was some sympathy for the American cause among the Canadiens and the New Englanders in Nova Scotia.[4] Neither party joined the rebels, although several hundred individuals joined the revolutionary cause.[4][5] An invasion of Canada; by the Continental Army in 1775, to take Quebec from British control was halted at the Battle of Quebec, by Guy Carleton, with the assistance of local militias. The defeat of the British army during the Siege of Yorktown in October 1781, signaled the end of Britain's struggle to suppress the American Revolution.[6] When the British evacuated New York City in 1783, they took many Loyalist refugees to Nova Scotia, while other Loyalists went to southwestern Quebec. So many Loyalists arrived on the shores of the St. John River that a separate colony—New Brunswick—was created in 1784;[7] followed in 1791 by the division of Quebec into the largely French-speaking Lower Canada along the St. Lawrence River and Gaspé Peninsula and an anglophone Loyalist Upper Canada, with its capital settled by 1796 in York, in present-day Toronto.[8] After 1790 most of the new settlers were American farmers searching for new lands; although generally favorable to republicanism, they were relatively non-political and stayed neutral in the War of 1812.[9]

The signing of the Treaty of Paris 1783, formally ended the war. Britain made several concessions to the Americans at the expense of the North American colonies.[10] Notably, the borders between Canada and the United States were officially demarcated.[10] All land south of the Great Lakes, which was formerly a part of the Province of Quebec and included modern day Michigan, Illinois and Ohio, was ceded to the Americans. Fishing rights were also granted to the United States in the Gulf of St. Lawrence and on the coast of Newfoundland and the Grand Banks.[10] The British ignored part of the treaty and maintained their military outposts in the Great Lakes areas it ceded to the U.S., and continued to supply the Indians there with munitions. The British evacuated the outposts with the Jay Treaty of 1795, but the continued supply of munitions irritated the Americans in the run-up to the war of 1812.[11]

The War of 1812 was fought between the United States and the British with the British North American colonies being heavily involved.[12] Greatly outgunned by the British Royal Navy, the American war plans focused on an invasion of Canada (especially what is today eastern and western Ontario). The American frontier states voted for war to suppress the First Nations raids that frustrated settlement of the frontier.[12] The war on the border with the U.S. was characterized by a series of multiple failed invasions and fiascos on both sides. American forces took control of Lake Erie in 1813, driving the British out of western Ontario, killing the Native American leader Tecumseh, and breaking the military power of his confederacy.[13] The war was overseen by Isaac Brock, with the assistance of First Nations and loyalist informants like Laura Secord.[14]

The War ended with the Treaty of Ghent of 1814, and the Rush–Bagot Treaty of 1817.[12] A demographic result was the shifting of American migration from Upper Canada to Ohio, Indiana and Michigan.[12] After the war, supporters of Britain tried to repress the republicanism in Canada, that was common among American immigrants to Canada.[12] The troubling memory of the war and the American invasions etched itself into the consciousness of Canadians as distrust of the intentions of the United States towards the British presence in North America.[15]pp. 254–255

In Lower Canada, a more substantial rebellion occurred against British rule. Both English- and French-Canadian rebels, sometimes using bases in the neutral United States, fought several skirmishes against the authorities. The towns of Chambly and Sorel were taken by the rebels, and Quebec City was isolated from the rest of the colony. Montreal rebel leader Robert Nelson read the "Declaration of Independence of Lower Canada" to a crowd assembled at the town of Napierville in 1838.[17] The rebellion of the Patriote movement were defeated after battles across Quebec. Hundreds were arrested, and several villages were burnt in reprisal.[17]

British Government then sent Lord Durham to examine the situation, he stayed in Canada only five months before returning to Britain, and brought with him, his Durham Report which strongly recommended responsible government.[18] A less well received recommendation was the amalgamation of Upper and Lower Canada for the deliberate assimilation of the French-speaking population. [The Canadas were merged into a single colony, United Province of Canada, by the 1840 Act of Union, with responsible government achieved in 1848, a few months after it was granted to Nova Scotia.[18] The parliament of United Canada in Montreal was set on fire by a mob of Tories in 1849 after the passing of an indemnity bill for the people who suffered losses during the rebellion in Lower Canada.[19]

Between the Napoleonic Wars and 1850 some 800,000 immigrants came to the colonies of British North America, mainly from the British Isles as part of the great migration of Canada.[20] These included Gaelic-speaking Highland Scots displaced by the Highland Clearances to Nova Scotia and Scottish and English settlers to the Canadas, particularly Upper Canada. The Irish Famine of the 1840s significantly increased the pace of Irish Catholic immigration to British North America, with over 35,000 distressed Irish landing in Toronto alone in 1847 and 1848.[21]

In 1789 war threatened between Britain and Spain on their respective rights; the Nootka Crisis was resolved peacefully largely in favor of Britain, the much stronger naval power. In 1793 Alexander MacKenzie, a Canadian working for the North West Company, crossed the continent and with his Aboriginal guides and French-Canadian crew, reached the mouth of the Bella Coola River, completing the first continental crossing north of Mexico, missing George Vancouver's charting expedition to the region by only a few weeks.[24] In 1821, the North West Company and Hudson's Bay Company merged, with a combined trading territory that was extended by a licence to the North-Western Territory and the Columbia and New Caledonia fur districts, which reached the Arctic Ocean on the north and the Pacific Ocean on the west.[25]